Sensex, Nifty Gain For Fourth Day; FPIs Buy Equities Worth 1,781 Crore
India's stock benchmarks gained for fourth day in a row, aided by gains in information technology, energy, fmcg, metal stocks.
KEY HIGHLIGHTS
NCLT Allows Bank of India's Insolvency Application Against Future Retail
Ramco Systems Surges Most In Over Four Weeks
Century Ply Q1 Net Income Beats Estimate
Tata Steel Signs MoU With BHP To Explore Low Carbon Iron, Steelmaking Technology In India
Syngene International Q1 Net Income Misses Estimate; Stock Declines
Closing Bell
India's stock benchmarks gained for fourth day in a row, aided by gains in information technology, energy, fmcg, metal stocks. The uptick in index heavyweight RIL, after government reduced the windfall tax on diesel and aviation fuel shipments, scrapped the duty of Rs 6 per litre on petrol exports and slashed tax on domestically produced crude by 27% to Rs 17,000 per tonne, aided the rally.
The Sensex rose over 600 points to 55,397.53. The 30-stock gauge climbed over 850 points to an intraday high of 55,630.216. The Nifty 50 advanced by similar magnitude to 16,520.85. Today 36 of Nifty 50 stocks rose and 14 fell.
The broader indices underperformed their larger peers with both the MidCap and SmallCap measures rising 0.25% and 0.4%, respectively. Thirteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Information Technology index adding 2.6%.
The market breadth is skewed in favour of bulls. About 1,926 stocks rose, 1,431 fell and 132 remained unchanged.
Foreign Investors Net Buyers
Foreign Portfolio Investors net bought equities worth Rs 1,780.94 crore on July 20, data from National Stock Exchanged showed. The domestic institutional investors were net sold stocks worth Rs 230.22 crore. Institutions have net bought Rs 333.9 crore worth of equities in July alone and Rs 52,084.1 crore so far this year.
10-Year Bond Yield Little Changed
Yield on the 10-yield bond rose 3bps to 7.46% before easing off to 7.45% at the close.
Source: Bloomberg
Rupee Closes At New Low
Indian Rupee fell 4 paise to 79.99 against the U.S. dollar, a new closing low.
Source: Bloomberg
Zuari Industries, Manali Petrochemicals Rise As Investory Dolly Khanna Acquires Stake
Shares of Manali Petrochemicals gained over 3.5%, most in nearly two weeks. The rise comes Chennai-based investor Dolly Khanna acquired 1.09% stake in the company.
Shares of Zuari Industries also jumped nearly 7%, most in over three weeks. Dolly Khanna had acquired 1.17% stake in the company, according to data from BSE.
Source: BSE
NCLT Allows Bank of India's Insolvency Application Against Future Retail
Amazon objected to the application saying banks had colluded with Future Retail.
The company had argued against insolvency proceedings saying application is based on default notices which had been erroneously issued.
NCLT dismissed all objections.
Ramco Systems Surges Most In Over Four Weeks
Shares of payroll software provider Ramco Systems jumped over 18%, most in over four weeks.
The rise comes after the company strengthened its presence in food and beverages industry by announcing dead with leading Saudi Arabian Restaurant Chain Kudu Company.
Ramco Systems will implement its global payroll and HR solution at Kudu Company.
Ramco Systems already provides payroll solutions for several global firms like Americana Restaurants, Herfy Foods, the company said in an exchange filing.
Trading volume is six times the 30-day average. Share price rose bove 100-day moving average on high trading volume. The company will report its earnings for the quarter-ended June on July 26. Ramco Systems has missed EPS estimates thrice in the past five quarters.
Source: Exchange filing, Bloomberg
Century Ply Q1 Net Income Beats Estimate
Century Ply (Standalone, YoY)
Net profit at Rs 96.47 crore Vs. Rs 33.89 crore (Bloomberg estimate of Rs 91.12 crore)
Revenue at Rs 881.48 crore Vs. 448.88 crore (Bloomberg estimate: Rs 784 crore)
EBITDA at Rs 145.28 crore Vs. Rs 61.21 crore
EBITDA margin at 16.48% Vs 13.64%
Source: Exchange filing, Bloomberg
Tata Steel Signs MoU With BHP To Explore Low Carbon Iron, Steelmaking Technology In India
JUST IN
Tata Steel, BHP intend to collaborate on ways to reduce emission intensity of blast furnace steel route.
Two firms to focus on using biomass as source of energy in steel production.
Tata Steel, BHP aim to utilise carbon capture and utilisation (CCU) in steel production
The project aims to demonstrate advantages of reducing carbon intensity of emissions in blast furnace steel-making process.
Blast furnace iron-making process accounts for over 60% of India's steel production.
Source: Tata Steel Press Statement
Syngene International Q1 Net Income Misses Estimate; Stock Declines
Q1FY2022-23 (Consolidated, YoY)
Net income down 4.4% at Rs 73.9 crore Vs Rs 77.3 crore YoY (Bloomberg consensus estimate: Rs 82.8 crore)
Revenue up 8.4% at Rs 644.5 crore Vs. Rs 594.5 crore YoY (Bloomberg estimate: Rs 606 crore)
EBITDA at Rs 176.2 crore Vs. Rs 149.6 crore YoY (forex adjusted)
EBITDA margin at 27.3% Vs. 25.2% YoY
Source: Exchange filing
SBI Market Capitalisation Exceeds LIC Of India
State Bank of India's market capitalisation rose above LIC on Tuesday to Rs 4.44 lakh crore.
SBI consolidated market capitalisation gains on Wednesday to Rs 4.54 lakh crore Vs. Rs 4.35 lakh crore for LIC.
LIC's shares have shed over 21% since the listing on May 17. SBI's stock rose 9% over the same period.
SBI is now the seventh largest firm, in terms of market capitalisation while LIC fell to eighth place.
Source: Bloomberg
European Markets Advance
European markets open higher, amid gains in Asian equities. ECB's policy meeting is scheduled for tomorrow, when the central bank is likely to hike rates for first time in over a decade.
Source: Bloomberg
Mid-Day Market Update: Sensex Climbs 750 Points; Nifty On Course To Gain For Fourth Day
India's stock benchmarks surged and are on course to gain for fourth day in a row, aided by gains in information technology, energy and oil & gas stocks.
The Sensex 750 points (1.35%) to 55,516.45. The Nifty advanced by similar magnitude to 16,547.55. About 42 of Nifty 50 stocks rose, while eight fell.
The broader indices underperformed their larger peers with MidCap index gaining 0.6% and SmallCap gauge jumping 0.75%. Fifteen of the 19 sectoral indices compiled by BSE Ltd. advanced with Energy, Metal, Oil & Gas, FMCG gaining over 1% while I.T. index climbed over 2%.
The market breadth is skewed in the favour of bulls. About 2,120 stocks rose, 1,133 fell and 147 remained unchanged.
Brokerages On Ambuja Cements Q2 Results
HDFC Life Q1 Results: Analysts' View
ITC Chairman & Managing Director Sanjiv Puri At The AGM
FMCG business estimated to have market potential of Rs 5 lakh cr by 2030, which is amongst the highest in the Indian FMCG space.
Will scale up & leverage power brands such as Aashirvaad, Sunfeast to address value-added adjacencies and invest in categories of the future.
Launched 110 products in FY22.
Inflation remains a key monitorable.
Aspire to take homegrown brands to overseas markets. The company has established distribution arrangements and currently exports to 60 countries. Over time, such exports will make a substantial contribution to the growth of your Company’s value-added FMCG portfolio.Sanjiv Puri, Chairman & Managing Director, ITC
EV-Linked Firms Jump As India Plans $10 Billion Electric Bus Contract
Shares of electric vehicle-linked companies like Tata Motors, Ashok Leyland, Sona BLW, JBM Auto, Olectra Greentech and battery firms like Amara Raja, Exide all surged in trade.
The uptick comes after comments by state-owned Convergence Energy Services' MD to Bloomberg Television that the company is planning $10 billion tender for 50,000 electric buses.
The tenders will likely look like infrastructure projects, according Mahua Acharya, Managing Director of CESL, which was formed to manage solar and EV leasing business of Energy Efficiency Services Ltd, a joint venture between four state-run energy companies.
Source: Bloomberg
Rupee Remains Little Changed
Indian currency falls 4bps to 79.99 during the session.
Source: Bloomberg
Vedanta Jumps Most In Nearly Two Weeks
Shares of Vedanta Ltd. rose over 5.7%, most in nearly two weeks to Rs 252.4 apiece. The sharp uptick comes amid government's decision to eliminated levy on gasoline exports and cut windfall taxes on other fuels.
Vedanta announced that it will pay a dividend of Rs 19.50 per equity share for FY2022-23, amounting to Rs 7,250 crore. The record date for the purpose of payment of dividend is July 27.
The dividend is a major for the company's holding company, Vedanta Resources, that owns 70% of Vedanta.
Vedanta Resources' bonds fell most in over two years in June, amid rise in commodity costs and concerns of possible recession.
Trading volume is 3.5 times the 30-day average. Of the 17 analysts tracking the company, 12 maintain 'buy', two suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 61.4%.
Source: Exchange filing, Bloomberg
Infosys, Tech Mahindra Lead The Gains In NSE Nifty IT Index
HUL Gains As Most Analysts Retain 'Buy' Post Q1 Results
Shares of Hindustan Unilever Ltd. rose nearly 2%, most this week to Rs 2,618 apiece.
The uptick comes after most analysts reiterated 'buy' recommendations, citing strong volumes, ability to manage through a macro environment, Ebitda growth after the company reported Q1 numbers, post market hours on Tuesday.
Of the 39 analysts tracking the company, 30 maintain 'buy', seven suggest 'hold' and two recommend 'sell' recommendations. About 21 analysts revised their recommendations after earnings on Tuesday, on which only three (Kotak Institutional Equities, IDBI Capital and Spark Capital) downgraded their recommendations.
Trading volume is nearly five times the 30-day average. The relative strength index of the stock is 72, suggesting it may be overbought.
Source: Bloomberg, Brokerage notes
ONGC, RIL Surge As Government Cuts Windfall Taxes On Fuel Exports
Shares of top crude exporter Oil & Natural Gas Corp, top fuel exporter Reliance Industries, Oil India surged at the open after India eliminated levy on gasoline exports and cut windfall taxes on other fuels.
Government, in a notification, cut windfall tax on diesel and ATF exports by Rs 2 per liter and eliminated Rs 6 per liter levy on gasoline exports.
Source: Government notification, Bloomberg
Opening Bell: Sensex, Nifty Climb 1%; ONGC, Reliance Industries Surge
India's stock benchmarks gained over 1%, aided by gains in energy and oil and gas stocks, after government cut windfall taxes imposed on diesel, petrol shipments.
The S&P BSE Sensex rose over 1.15% (635 points) to 55,403.42. The NSE Nifty 50 advanced by similar magnitude to 16,522.65. All constituents of Nifty 50 index advanced.
The S&P BSE MidCap index underperformed its larger peers, gaining 0.7% while S&P BSE SmallCap almost mirrored Sensex and Nifty. All 19 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Oil & Gas and Energy gaining 2%.
The market breadth is skewed in the favour of bulls. About 1,962 stocks rose, 389 fell and 84 remained unchanged.
Rupee Opens Little Changed
Rupee rises 2 paise to 79.93 against the U.S. dollar, at the open.
Source: Bloomberg
Trade Setup For Wednesday
Government Cuts Windfall Taxes Imposed On Diesel, Petrol Shipments
The government has reduced the windfall tax on diesel and aviation fuel shipments by Rs 2 per litre.
The duty of Rs 6 per litre on petrol exports has been scrapped.
Tax on domestically produced crude has been cut by 27% to Rs 17,000 per tonne.
Source: Gazette notification
Net Institutional Flow Remain Positive For Second Day
Earnings Today
Wipro, Gland Pharma, IndusInd Bank, Tata Communications, Agro Tech Foods, CEAT, Century Plyboards, Hathway Cable & Datacom, Havells India, JSW Ispat Special Products, Lloyds Steels Industries, Mastek, Newgen Software Technologies, Oracle Financial Services Software, Reliance Industrial Infrastructure, Sagar Cements, Sasken Technologies, Stylam Industries, Syngene International.
Stocks To Watch
Vedanta: The company approved a second Interim dividend of Rs 19.5 per equity share. The total dividend payout for the company amounts to Rs 7,250 crore.
Grasim: The company plans for trading and marketing of building material through a B2B e-commerce. It approved investment of Rs 2,000 crore over the next 5 years.
Krsnaa Diagnostic: The company has won a tender from Rajasthan Medical Education Society (Directorate of Medical Education), Government of Rajasthan for supply, installation, operation, and maintenance of CT Scan Center at Raj - MES Medical College located at Churu, Rajasthan on Public Private Partnership basis. The tenure of contract is 10 years.
Trident: The company has temporarily shut down major operations in Punjab, including two textile units and one paper and chemical unit, from intervening night of July 20-21 due to protests. Estimated impact on the production shall be intimated once normalcy resumes.
Vodafone Idea: The company will consider issue of equity shares or warrants convertible into equity shares upto 42.76 crore shares to promoter entity on July 22.
Gillette India/ Procter & Gamble Hygiene and Health Care: The companies have appointed L. V. Vaidyanathan as Managing Director for a period of five years with effect from July 1, 2022.
Earnings Post Market Hours
Hindustan Unilever Q1 FY23 (Consolidated, QoQ)
Revenue up 6% at Rs 14,624 crore Vs Rs 13,767 crore (Bloomberg estimate: Rs 13,401.32 crore)
EBITDA up 3% to Rs 3,402 crore Vs Rs 3,301 crore (Bloomberg estimate: Rs 3,122.3 crore)
EBITDA margin at 23.3% Vs 24% (Bloomberg estimate: 23.3%)
Net profit up 3% to Rs 2,381 crore Vs Rs 2,304 crore (Bloomberg estimate: Rs 2,206.82 crore)
ICICI Lombard General Insurance Q1 FY23 (Consolidated, YoY)
Revenue up 4% at Rs 3,978 crore Vs 3,831 crore (Bloomberg estimate: Rs 3,747 crore)
EBITDA at Rs 317 crore Vs Rs 54 crore, up 4.9 times
EBITDA margins at 8% vs 1.4%
Net profit up 80% to Rs 349 crore Vs Rs 194 crore (Bloomberg estimate: Rs 388 crore)
Ambuja Cements Q2 CY23 (Consolidated, YoY)
Revenue up 15% at Rs 8,032.88 crore Vs Rs 6,978.24 crore (Bloomberg estimate: Rs 7,993.9 crore)
EBITDA fell 39% at Rs 1,114.88 crore Vs Rs 1,827.36 crore (Bloomberg estimate: Rs 1,524.3 crore)
EBITDA margin 13.88% Vs 26.19% (Bloomberg estimate: 19%)
Net profit fell 25% at Rs 865.44 crore Vs Rs 1,161.16 crore (Bloomberg estimate: Rs 644.8 crore)
Hatsun Agro Product Q1 FY23 (Consolidated, YoY)
Revenue up 31% at Rs 2,014.6 crore Vs Rs 1,538.78 crore
EBITDA fell 2.5% at Rs 178.14 crore Vs Rs 182.81
EBITDA margin 8.8% Vs 11.8%
Net profit fell 11% at Rs 51.95 crore Vs Rs 58.32 crore
Declared dividend of Rs 6 per share of face value of Rs 1 each
L&T Finance Holdings Q1 FY23 (Consolidated, YoY)
Revenue fell 2% at Rs 2,988.4 crore Vs Rs 3,053.77 crore
EBIT fell 3.3% at Rs 1,572.58 crore Vs Rs 1626.38 crore
EBIT margin 52.62% Vs 53.26%
Net profit up 47% at Rs 262.1 crore Vs Rs 177.85 crore
Rallis India Q1 FY23 (Consolidated, YoY)
Revenue up 16.5% at Rs 862.78 crore Vs Rs 740.51 crore
EBITDA fell 7% at Rs 112.66 crore Vs Rs 121.61 crore
EBITDA margin 13% Vs 16.42%
Net profit fell 18% at Rs 67.47 crore Vs Rs 82.42 crore
Share India Securities Q1 FY23 (Consolidated, YoY)
Revenue up 63% at Rs 191.31 crore Vs Rs 117.51 crore
EBIT up 56% at Rs 60.01 crore Vs Rs 38.46 crore
EBIT margin 31.37% Vs 32.73%
Net profit up 75% at Rs 42.37 crore Vs Rs 24.14%
Declared interim dividend of Rs 2 per share of face value of Rs 10 each
Key Global Cues
Sensex, Nifty Set To Rise; RIL, ONGC, Oil India, HUL, Vedanta, Grasim, Wipro In Focus
Asian equities rallied on the back of surge in U.S. markets amid dip in the dollar. Shares gained over 1% in Japan, South Korea and Australia after the S&P 500’s biggest jump since June. US futures advanced.
At 6:40 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- rose 0.89% to 16,483.50 points.
The euro climbed to two-week high against the dollar on hopes of bigger-than-expected European Central Bank interest-rate hike Thursday. Elsewhere, Brent oil traded around $107 a barrel, while Bitcoin hovered above $23,000.